In Walter Isaacson’s biography Steve Jobs he recounts the famous story about how Steve Jobs described the mission of Apple(AAPL). They were creating a “bicycle for the mind”. Tools that expedited the creation of work and sharing of knowledge. And now with the invention of the iPhone we have minds being joined and connected in ways we could have never imagined only ten years ago. Apple may be a world class manufacturer of devices but Apple has always been in the information business.
In the business world all costs are categorized by the activities that drive them. If you apply this same philosophy to tech companies you end up with a stark dividing line. There are companies whose main purpose is moving information and those who are moving pounds. Moving information is the future. Moving pounds is an outgrowth of our history.
Companies that specialize in delivering media or data like Apple and Google are in the business of moving information. Whereas companies that are all about delivering merchandise or transporting people like Amazon and Tesla are in the business of moving pounds. There’s a big difference.
There is much more value in moving information versus pounds. Try to imagine the most wildly successful outcome for a company that moves pounds. Lets say that SpaceX was able to successfully get people to Mars. That would be great. But only a relatively few people would ever get the chance to go.
Arguably the most important part of any Martian expedition would be transporting camera and sensor equipment. Companys that manufacture this equipment are in the business of moving information. They can do what SpaceX never can, bring Mars to the rest of the world. The real victory will end up being all the millions of people who will have the experience delivered to them via their iPads, televisions, or virtual reality goggles. This will be much more consequential than sending a few people to Mars. Moving information trumps moving pounds.
Companies like Blue Origin or SpaceX aren’t much different from a railroad company or trucking outfit. I’m not saying that’s not important but moving pounds was the exciting technological leap that began in the 1800’s. Moving information is about shaping the future, moving pounds is about refinement of the past. And there’s an inherent limit to moving pounds which will always put it at a disadvantage to information.
Even if you decided that a trip to Mars was for you. What would be the cost? It wouldn’t be just money. You would essentially sacrifice a big chunk of your life to do it. That would mean losing time with friends and loved one. Even going on an overseas vacation has an opportunity cost. Again, moving information trumps moving pounds.
So when you’re trying to evaluate a company’s place in the future ask yourself this one question. Is Company X in the business of moving information or pounds?
Companies that specialize in delivering media or data like Apple and Google are in the business of moving information. Whereas companies that are all about delivering merchandise or transporting people like Amazon and Tesla are in the business of moving pounds. There’s a big difference.
There is much more value in moving information versus pounds. Try to imagine the most wildly successful outcome for a company that moves pounds. Lets say that SpaceX was able to successfully get people to Mars. That would be great. But only a relatively few people would ever get the chance to go.
Arguably the most important part of any Martian expedition would be transporting camera and sensor equipment. Companys that manufacture this equipment are in the business of moving information. They can do what SpaceX never can, bring Mars to the rest of the world. The real victory will end up being all the millions of people who will have the experience delivered to them via their iPads, televisions, or virtual reality goggles. This will be much more consequential than sending a few people to Mars. Moving information trumps moving pounds.
Companies like Blue Origin or SpaceX aren’t much different from a railroad company or trucking outfit. I’m not saying that’s not important but moving pounds was the exciting technological leap that began in the 1800’s. Moving information is about shaping the future, moving pounds is about refinement of the past. And there’s an inherent limit to moving pounds which will always put it at a disadvantage to information.
Even if you decided that a trip to Mars was for you. What would be the cost? It wouldn’t be just money. You would essentially sacrifice a big chunk of your life to do it. That would mean losing time with friends and loved one. Even going on an overseas vacation has an opportunity cost. Again, moving information trumps moving pounds.
So when you’re trying to evaluate a company’s place in the future ask yourself this one question. Is Company X in the business of moving information or pounds?
RSS Feed